Brookfield Asset Management Inc. (NYSE:BAM) shares traded lower over the last trading session, losing -0.79% on 06/18/21. The shares fell to a low of $48.47 before closing at $48.88. Intraday shares traded counted 4.64 million, which was -105.3% lower than its 30-day average trading volume of 2.26M. BAM’s previous close was $49.27 while the outstanding shares total 1.51B. The firm has a beta of 1.25, a 12-month trailing P/E ratio of 59.18, and a growth ratio of 6.28. The stock’s Relative Strength Index (RSI) is 48.81, with weekly volatility at 1.65% and ATR at 0.86. The BAM stock’s 52-week price range has touched low of $29.09 and a $50.97 high.
Investors have identified the Asset Management company Brookfield Asset Management Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $77.76 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.
Brookfield Asset Management Inc. (BAM) Fundamentals that are to be considered.
When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For BAM, the company has in raw cash 9.83 billion on their books with 9.1 billion currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 65.0 billion total, with 60.69 billion as their total liabilities.
BAM were able to record 151.0 million as free cash flow during the 08/05/2021 quarter of the year, this saw their quarterly net cash flow reduce by -107.0 million. In cash movements, the company had a total of 1.83 billion as operating cash flow.
Potential earnings growth for Brookfield Asset Management Inc. (BAM)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/05/2021 quarter of the year, Brookfield Asset Management Inc. recorded a total of 16.41 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -1.07% coming in sequential stages and their sales for the 08/05/2021 quarter reducing by -4.13%.
What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 12.19 billion trying to sell their products during the last quarter, with the result yielding a gross income of 4.22 billion. This allows shareholders to hold on to 1.51B with the recently reported earning now reading 2.42 cents per share. This is a figure that compared to analyst’s prediction for their 08/05/2021 (1.80 cents a share).
Is the stock of BAM attractive?
In related news, 10% Owner, ATI Investment Parent, LLC sold 47,625,000 shares of the company’s stock in a transaction that recorded on Oct 19. The sale was performed at an average price of 22.00, for a total value of 1,047,750,000. As the sale deal closes, the Director, OCM Growth Holdings LLC now bought 2,129,748 shares of the company’s stock, valued at 31,946,216. Also, Director, OCM Growth Holdings LLC bought 21,045 shares of the company’s stock in a deal that was recorded on Sep 08. The shares were price at an average price of 13.00 per share, with a total market value of 273,587. In the last 6 months, insiders have changed their ownership in shares of company stock by 12.90%.
10 out of 13 analysts covering the stock have rated it a Buy, while 2 have maintained a Hold recommendation on Brookfield Asset Management Inc.. 0 analysts has assigned a Sell rating on the BAM stock. The 12-month mean consensus price target for the company’s shares has been set at $55.57.